Oil prices hit four-week high on Tuesday
Oil prices climbed more than three per cent on Tuesday, reaching their highest levels in four weeks as renewed tensions between the United States and Iran raised concerns over energy supplies through the Strait of Hormuz.
Brent crude futures rose $2.74, or 3.29 per cent, to $86.04 a barrel, while US West Texas Intermediate (WTI) crude gained $2.21, or 2.83 per cent, to $80.35 a barrel.
The gains came after the United States reinstated a naval blockade of Iran, renewed hostilities with Tehran, and proposed a 20 per cent fee to secure shipping through the Strait of Hormuz. This key route carries around one-fifth of global oil and liquefied natural gas supplies.
The escalation followed missile strikes on two United Arab Emirates tankers in Omani waters, while tanker traffic through the Strait fell to its lowest level in two months.
Analysts said the renewed conflict has increased the risk of prolonged supply disruptions, with ANZ forecasting oil prices could remain in the $85–$90 per barrel range if tensions persist. Meanwhile, Iran said its oil exports continue as normal despite tighter US sanctions.
Separately, China’s crude oil imports plunged 41.3 per cent in June to their lowest level in nearly a decade as refinery activity weakened amid sluggish domestic demand and export restrictions.
Attribution: Reuters